BONDS: EGBs-GILTS CASH CLOSE: Broad Weakness Ahead Of Euro CPI, UK Budget

European yields rose Tuesday, with a second consecutive session of Gilt underperformance vs Bund.

• Most of the session's weakness came overnight, led by Bunds after they had strengthened Monday - but  there was no clear trigger for the move.
• Much lower than expected US job openings data saw a global core FI rally in early Europeaan afternoon trade,but the impact eventually reversed as potentially mitigating factors such as hurricane effects were considered (and US consumer confidence came in strong).
• The European data calendar was relatively light: The UK saw growth in loan approvals alongside a softening in mortgage rates in September, though consumer credit remains dampened.
• The UK and German curves bear steepened through the 10Y segment, with 30Y instruments outperforming. Periphery EGB spreads were slightly wider, led by Italy and Greece.
• The UK budget release is Wednesday's highlight - MNI's Preview is here  (link). Also garnering attention will be the start of the Eurozone October flash inflation round with Spain and Germany (MNI's Preview is here - link), as well as the first read of Q3 eurozone GDP.

Closing Yields / 10-Yr Periphery EGB Spreads To Germany

• Germany: The 2-Yr yield is up 4.2bps at 2.142%, 5-Yr is up 5.7bps at 2.159%, 10-Yr is up 5.1bps at 2.337%, and 30-Yr is up 3.4bps at 2.63%.
• UK: The 2-Yr yield is up 5.1bps at 4.259%, 5-Yr is up 5.7bps at 4.19%, 10-Yr is up 6.1bps at 4.315%, and 30-Yr is up 3.9bps at 4.791%.
• Italian BTP spread up 2bps at 122.6bps / Spanish up 0.4bps at 69.9bps